FIN3701
ASSIGNMENT 01
SEMESTER - 2
DUE DATE: 20 AUGUST
2024
"Elevate Your Excellence: Where Distinction Meets Assurance in Every Assignment!"
, FIN3701 ASSIGNMENT 1 SEMESTER 2 – 2024
UNIQUE NUMBER: 232195
DUE DATE: 20 AUGUST 2024
© FIN3701 1
, QUESTION 1.
REQUIRED:
1.1 Calculate the NPV for each of the three projects. (9 marks)
NPV Calculation:
a. Machine A: NPV = (𝑅42 663.11)
b. Machine B: NPV = 𝑅6 646.58
c. Machine C: NPV = (𝑅3 160.52)
1.2 Calculate the annualised net present value (ANPV) of each machine. (9 marks)
ANPV Calculation:
a. Machine A: ANPV = 𝑅10 377.79 ≈ (𝑅10 378)
b. Machine B: ANPV = 𝑅2 188.53 ≈ 𝑅2 189
c. Machine C: ANPV = 𝑅876.76 ≈ (𝑅877)
1.3 Based on the NPV and IRR calculated above, would you advise Batlokwa (Pty) Ltd to
invest their funds in the replacement? Give a reason for your answer. (2 marks)
FULL CALCULATIONS SHOWN ON THE NEXT PAGE
© FIN3701 2